Deputy Prime Minister and Minister for Foreign Affairs Naryan Kaji Shrestha told Republica that some issues relating to the agreements are yet to be finalized by officials of the two countries. [break]
The Bilateral Investment Protection Agreement (BIPA) will safeguarding business ventures from non-commercial risks such as riots, vandalism and terrorist attacks. The Agreement on Avoidance of Double Taxation will free Indian investors from the need to pay taxes in India once they pay them in Nepal.
As both the agreements will serve investor interests, India had been pushing Nepal to sign them since long back. "These will help us attract much needed Indian investment as well," said an official at the Ministry of Industry.
Likewise, the cabinet also gave its nod to the PM to accept a credit line of US$250 million (about Rs 20 billion) from Exim Bank of India. "We will sign a loan agreement with Exim Bank during the visit," said Finance Secretary Krishna Hari Baskota, adding that the loan will be used in the development of hydropower, roads and irrigation.
Prime Minister Dr Baburam Bhattarai is embarking on a four-day goodwill visit to India on Thursday at the head of a 37-member delegation including ministers, government secretaries, businessmen and lawmakers.
This is the first visit by a Nepali prime minister to the southern neighbor since the visit by then prime minister Madhav Kumar Nepal in 2009.
Meanwhile, Nepal is going to request Indian assistance for the construction of 53 bridges along the Hulaki Sadak in the Tarai, and for the establishment of a management institute with full faculty and funding.
The prime minister is due to meet Indian President Pratibha Devisingh Patil and Vice-president Mohammad Hamid Ansari and hold bilateral talks with Indian Prime Minister Manmohan Singh on Friday. During his stay in India, he is to interact with representatives of the Indian business community, civil society and intellectuals.
´This is a goodwill visit and we expect it to take our bilateral relations to a new height," said Shrestha.
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